If the turbulent Los Angeles county housing market – with home values dipping as much as 45 percent since 2006 – has ou confused about refinancing, you've come to the right place. Credit unions are lending a helping hand. Banks continue to tighten their lending practices after offering sub-prime loans that led to the housing bubble, which is making it difficult for Los Angelinos to adjust home loans.

"Refinancing your home mortgage loan can be very beneficial, but you need to apply it to your circumstances," said Shannon Furiani, SCE Federal Credit Union Vice President of Lending. "If you're going to stay in yoru house long enough to see the savings, then do it."

30-year fixed mortgages are at an all-tim low

Recent reports show interest rates on 30-year fixed mortgages have fallen to record lows, and SCE Federal Credit Union offers these tips for refinancing.

1

Trust your credit union

Home loans are complex. The language and acronyms in a home loan can be confusing and a good partner will simplify them for you. Credit unions have been trusted by their member-owners for more than a century. We're owned by our members, so the profits go back to you in the form of great rates on savings accounts and loans.

2

Weight your options

Historically, the rule of thumb has been to refinance if you can reduce your interest by two percent. Today, one percent is acceptable. Ask for good faith estimates to compare loan deals. Run the numbers yourself on a loan calculator to determine your break-even point and how much you'll save. Look at the details, such as interest rates, closing costs and any prepayment penalties.

3

Be prepared

Go into the refinance process being able to show your financial house is in order. Lenders will ask to see that you have a steady income, an acceptable debt-to-income ratio and good credit. Be prepared for a home appraisal, title search and application fees.

Refinancing your home loan can lower your interest rate, which will decrease the size of your monthly mortgage payment. If you're able to modify your loan, look into shortening it from a fixed 30-year to a fixed 15-year to build equity in your home faster. Lastly, refinancing your home allows you to switch from a fixed to a variable interest rate, or vice-versa.

At SCE Federal Credit Union, we pride ourselves on providing our members and communities we support with exceptional service and solutions to promote financial growth. Let our advisors help you achieve your financial goals.